SAN ANTONIO – Oil and gas prices have risen at a historic rate since the start of the war in Iran a little more than a week ago.
Analysts tracking prices point to the disruption of oil shipments from the Middle East as a reason why.
While a lot of attention has been given to the price of regular unleaded, the price of all the other grades of gasoline has risen just as sharply, if not more.
As of Monday, according to AAA, the price of diesel is around $4.48 in San Antonio.
A week ago, they marked the average price at $3.39.
For companies like River City Produce, a wholesale produce supplier on South Laredo Street whose trucks all run on diesel, it is a reason to keep tabs on market prices as a whole.
“Regionally, and on the West Coast, it’s even higher,” said Nando Gonzalez, one of the partners of River City Produce.
According to its website, the company operates six days a week and has about 50 to 60 big rigs and mid-size truck that have large fuel tanks.
“An 18-wheeler holds between 200 and 300 gallons of diesel, depending on the size of the tank and truck, because some of these trucks, they’re long-haul trucks.” Gonzalez said.
He said that amount is just the two tanks located on either side of the cab that operate the cab only.
Because River City Produce ship fruits and vegetables, all of their trucks have refrigerated trailers that have an independent fuel tank that also run on diesel.
He said the company’s big rigs utilize a lot of diesel, and it takes a lot to fill just one of them.
“Right now, based on today’s market, about $900 to $1,000,” Gonzalez said. He added that the rigs get about three and half miles per gallon.
Inside the warehouse is produce from around the nation and the world that is shipped into San Antonio by trucks. The cost of shipping produce in impacts the prices that are boxed and sent out the door.
Gonzalez gave an example of the cost of bringing in out-of-state potatoes versus those grown in Texas.
“I have an Idaho potato that is exactly the same size. The difference is that the freight on this was only like $2,” he said. “The same box, if I bring it in from Idaho is $7 just for freight, because of the fuel.”
Gonzalez said this is not the first time the company has had to deal with fuel prices that have jumped to high prices. He said the company will adapt to the current business circumstances accordingly, but hopes the war ends soon.
“Unfortunately, I would be remiss if I told you there’s not going to be any type of an adjustment. Everyone understands that,” he said. “The customers, they understand that it’s a cost of business because just as quickly as a price can go up, it’ll come right back down.”
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